Title
A RESOLUTION EXPRESSING THE INTENT OF THE CITY OF HUDSON IN 2024 TO SELL BY INTERNET AUCTION PERSONAL PROPERTY, INCLUDING MOTOR VEHICLES AND OTHER PROPERTY REFERENCED IN REVISED CODE ?721.15 WHICH ARE NO LONGER NEEDED FOR PUBLIC USE OR ARE OBSOLETE OR UNFIT FOR THE USE FOR WHICH THEY WERE ACQUIRED.
Brief Description: Staff is requesting permission to use govdeals.com and other similar services to dispose of unneeded, obsolete, or unfit equipment. This is a required annual renewal of agreement for Govdeals online auction services.
Body
Legislative History
Ohio Revised Code, Section 721.15 allows use of internet auctions to dispose of unneeded, obsolete, or unfit property if the municipality adopts, each calendar year, a resolution expressing that intent. Council has passed resolutions annually beginning in 2007 to allow use of govdeals.com.
Purpose & Explanation
The costs associated with an annual public auction are a commission (sliding scale of 7-12% depending on auction proceeds) and $1,000-$1,500 in overhead (advertising and administrative support). There are also intangible costs associated with the storage of surplus equipment and loss of value due to deterioration of equipment during the waiting period.
Govdeals.com allows sales to registered entities (including government entities and private individuals) through an online auction of items with a reserve (low price) set by the seller. The fixed sales commission and administration cost for 2024 will be 12.5% which is paid by the buyer. The City receives a check from Govdeals for all proceeds.
Auction sales from January 1, 2023, through November 14, 2023, totaled $65,134.00 for the Public Works Department.
The City has had a positive experience selling aged vehicles, equipment, apparatus, and various other items on govdeals.com. Staff is requesting a resolution be adopted for calendar year 2024, as we anticipate vehicles, equipment, and other items will be available for public auction.
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